Bill Text: NY S05148 | 2015-2016 | General Assembly | Amended
Bill Title: Relates to loan products that may be offered by banks; authorizes a bank or trust company, with the approval of the superintendent, to offer a loan product that encourages personal savings by requiring a borrower to place a portion of the loan into an interest-bearing savings account.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2015-06-10 - SUBSTITUTED BY A6105A [S05148 Detail]
Download: New_York-2015-S05148-Amended.html
S T A T E O F N E W Y O R K ________________________________________________________________________ 5148--A Cal. No. 670 2015-2016 Regular Sessions I N S E N A T E May 5, 2015 ___________ Introduced by Sen. SAVINO -- read twice and ordered printed, and when printed to be committed to the Committee on Banks -- reported favora- bly from said committee, ordered to first and second report, ordered to a third reading, amended and ordered reprinted, retaining its place in the order of third reading AN ACT to amend the banking law, in relation to loan products that may be offered by banks THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: 1 Section 1. Paragraph (c) of subdivision 4 of section 108 of the bank- 2 ing law, as amended by chapter 19 of the laws of 1991, subparagraph (iv) 3 as amended by chapter 119 of the laws of 1992 and as further amended by 4 section 104 of part A of chapter 62 of the laws of 2011, is amended to 5 read as follows: 6 (c) The rate of interest authorized by this subdivision shall be 7 inclusive of all charges incident to investigating and making any loan. 8 No fee, commission, expense, or other charge whatsoever in addition 9 thereto shall be taken, received, reserved, or contracted for, except 10 (i) the fees payable to the appropriate public officer to perfect any 11 lien or other security interest taken to secure the loan or the premium, 12 not in excess of such filing fee, payable for any insurance in lieu of 13 such filing; (ii) in case of default, and in accordance with the 14 provisions of the instrument evidencing the obligation, either a fine in 15 an amount not to exceed five cents per dollar on any installment which 16 has become due and remained unpaid for a period in excess of ten days, 17 but no such fine shall exceed five dollars and only one fine shall be 18 collected on any such installment regardless of the period during which 19 it remains in default, and provided further that should the aggregate of 20 such fines collected in connection with any loan exceed two per centum 21 of such loan, or in any event twenty-five dollars, the bank or trust 22 company shall refund such excess to the borrower within sixty days after EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD09865-02-5 S. 5148--A 2 1 the loan is paid in full, or, subject to an allowance of unearned inter- 2 est attributable to the amount in default, interest on each amount past 3 due at a rate not in excess of the rate provided for in the instrument 4 evidencing the obligation; (iii) the actual expenditures, including 5 reasonable attorney's fees for necessary court process; and (iv) in case 6 the bank or trust company insures a borrower under a credit unemployment 7 insurance policy, group life insurance policy, group health insurance 8 policy, group accident insurance policy, or group health and accident 9 insurance policy, or requires insurance on personal property securing 10 any such loan, an amount not in excess of the premiums chargeable in 11 accordance with rate schedules then in effect and on file with the 12 superintendent of financial services for such insurance by the insurer. 13 No bank or trust company shall require a borrower to place any sum on 14 deposit, or to make deposits in lieu of regular periodic installment 15 payments, or to do or refrain from doing any other act which would 16 entail additional expense or sacrifice, as a condition precedent to 17 granting a loan under the authority of this subdivision except as 18 provided in subdivision five-b of this section. NOTWITHSTANDING THE 19 FOREGOING, A BANK OR TRUST COMPANY MAY, WITH THE PRIOR APPROVAL OF THE 20 SUPERINTENDENT, OFFER A LOAN PRODUCT THAT ENCOURAGES PERSONAL SAVINGS BY 21 REQUIRING A BORROWER TO PLACE A PORTION OF THE PRINCIPAL OF THE LOAN 22 INTO AN INTEREST-BEARING SAVINGS ACCOUNT AS A CONDITION PRECEDENT TO 23 GRANTING A LOAN UNDER THE AUTHORITY OF THIS SUBDIVISION. IN DECIDING 24 WHETHER TO APPROVE A LOAN PRODUCT PURSUANT TO THE PRECEDING SENTENCE, 25 THE SUPERINTENDENT MAY CONSIDER THE RECENT RESULTS OF EXAMINATIONS OF 26 THE BANK OR TRUST COMPANY, THE TERMS AND STRUCTURE OF, AND THE UNDER- 27 WRITING CRITERIA AND MARKETING PLAN FOR THE PROPOSED LOAN PRODUCT, OTHER 28 LOANS OFFERED BY THE BANK OR TRUST COMPANY, AND SUCH OTHER FACTORS THE 29 SUPERINTENDENT DEEMS TO BE RELEVANT. Notwithstanding the provisions of 30 this paragraph no refund of excess fines shall be required if it amounts 31 to less than one dollar. 32 S 2. This act shall take effect immediately.